Debt Resolution

Cash-strapped Sri Lanka is exploring the options for domestic debt restructuring in the post-IMF bailout scenario to further stabilise its shaken economy, an official statement said on Friday. Sri Lanka received USD 330 million this month as the first tranche of the International Monetary Fund (IMF) bailout programme, which will pave the way for the debt-ridden country to achieve better "fiscal discipline" and "improved governance. In a statement issued by the Sri Lankan government after making an investor presentation on Thursday, the Governor of the Central Bank and the Secretary to the Treasury said the Authorities are also exploring options for a domestic debt optimisation (DDO) operation aimed at liquidity relief while preserving financial stability to avoid further eroding of Sri Lanka's repayment capacity. The statement outlined that despite the ambitious fiscal consolidation efforts, Sri Lanka's public debt trajectory is set to remain unsustainable in the absence of ...

The National Company Law Appellate Tribunal (NCLAT) on Tuesday issued notices to Torrent Investments and other respondents on a petition filed by the lender of Reliance Capital seeking a second round of financial bids for the debt-ridden firm, currently going through insolvency resolution process. A two-member NCLAT bench headed by Chairperson Justice Ashok Bhushan issued notices, directing respondents to file replies within 3 days. The appellate tribunal has directed to list the petition on February 9, 2023, saying the appeal would be heard and decided by it. Vistra ITCL (India) Ltd, one of the members of the Committee of Creditors of Reliance Capital, has moved NCLAT against an NCLT order. On February 2, the Mumbai bench of National Company Law Tribunal (NCLT) had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital (RCap) and said the challenge mechanism for financial bids has already concluded. It upheld the plea by Torrent .

According to a notification from the Ministry of Corporate Affairs, the website companies use for electronic filings will not be available from January 7 to January 22

Throwing light on the recent crypto meltdown, she said it was clear that internationally agreed standards of regulations had become necessary

Infra lending firm's affidavit says it has reduced the number of entities under it from 302 to 101

GFG Alliance, which has a presence in the domestic steel sector, has raised USD 40 million (around Rs 330 crore) term loan from Eclipse Business Capital in the US. The amount, which has been raised through group company LIBERTY Steel USA, will be utilised to refinance its existing term loan, GFG Alliance said in a statement on Monday. "LIBERTY Steel USA has successfully raised a USD 40 million term loan with Eclipse Business Capital to refinance its existing term loan before its maturity in January 2023," it said. The statement did not divulge further information. "The refinancing of our term loan and the enhancement of our ABL (Asset-based Lending) with Eclipse Business Capital off the back of strong results this year shows the growing confidence in the future of our business and concludes our current financing needs," Axel Ampolini, Executive Vice President at LIBERTY Steel USA, said. Martin Battaglia, Chief Executive Officer of Eclipse Business Capital, said: "Our partnership w

This is the first time that an e-auction of this scale would take place for a debt resolution under the Insolvency and Bankruptcy Code, 2016

'Can't take off if relief not granted'

"Lenders will decide on the further course of action, including the stance for negotiations on Friday," the source said

In November last year, the Reserve Bank of India had sent the company to debt resolution after it defaulted on its loans worth Rs 24,000 crore

Credit-risk rating based limits introduced for all new schemes; existing schemes to be grandfathered

The cumulative recovery rate under the insolvency resolution processes of debt-ridden companies declined to 30.18 per cent at the end of the September quarter, indicating that lenders took more haircut on their exposure, shows a study. The recovery rate has fallen steeply from a peak of 43 per cent in Q1 FY20. Of the Rs 7,90,626.2 crore claims from the financial creditors admitted by various benches of the National Company Law Tribunal (NCLT), only Rs 2,43,452.5 crore or 30.18 per cent have been recovered till the end of Q2 FY23, as per an analysis of IBBI data done by Care Ratings. The overall recovery rate implies a haircut of around 70 per cent for the lenders. The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in implementing the Insolvency and Bankruptcy Code (IBC), which provides for market-linked and time-bound resolution of stressed assets. The cumulative recovery rate has been on a downtrend, falling from 43 per cent in Q1 FY20 and 32.9 per cent in Q

IBBI says while this reflects extent of value erosion by the time a corporate debtor enters CIRP, it remains the highest among all options available to creditors for recovery

Reserve Bank of India, the nation's debt manager, is preparing to sell its first ever batch of sovereign green bonds as early as next month, according to people with knowledge of the matter

China's property debt crisis is entering a new phase as even developers that had long been considered safer rapidly tumble into distress

UN Secretary General Antonio Guterres has said he "very strongly" hopes that India's G20 presidency will allow for the creation of effective systems of debt restructuring, warning that the developing countries are facing a "perfect storm" amid the impact of the pandemic and increased food and fuel prices due to the Ukraine conflict. India will assume the Presidency of the G20 for one year from December 1, 2022 to November 30, 2023. Ahead of his three-day visit to India starting Tuesday, Guterres also said that he has been "very strongly advocating" for the need of reforms in "our international economic and financial system that was to a large extent built by the rich for the rich". "I very strongly hope that the presidency of India of the G20 will allow for the creation of effective systems of debt restructuring and debt relief for the possibility of multilateral development banks to be able to do concessional funding to middle income countries that are particularly vulnerableto mak

This is the third deadline extension as the lenders seek better offers from the bidders

Carbon Resources, which has recently submitted a plan to the lenders of debt-laden McLeod Russel in a bid to acquire a controlling stake in the stressed tea major, is pinning hope on its non-binding offer, a company official said on Sunday. The carbon product manufacturer had picked up a 5.03 per cent stake in McLeod Russel in September and made the Rs 1,245-crore offer for the resolution of debt of the bulk tea producer. "Bankers held a meeting with us on October 1, post our non-binding offer sent to them in September. They have asked for a detailed plan for which we have sought some data. However, bankers are yet to share that. We are waiting for their response and are hopeful about our plan," Carbon Resources finance head Mahendra Sharma told PTI. He also said the company is optimistic after the meeting with the bankers, as lenders asked for a detailed "rehabilitation" proposal for 'ailing' McLeod Russel. His comment came days after the BM Khaitan family, the existing promoters

Targets repaying remaining debt in eight years; Rs 1,200 crore opened on Tuesday

With two rival bids, the once powerful group that owns the world's largest tea producer is in danger of losing control of its last major asset